Last week, the SP500 bounced off a rising supporting trendline, filled a small price gap and moved to the inflection point near 2060. With the continue improvement in the market breadth, the prospect for the SP500 to move above the pivot at 2076.72 is good. If a pullback appears, the 2020.86 level could be retested for support.
SPX:
(click on the chart to enlarge)
In term of the SPY, it filled the 12/18/15 gap with another gap. This new gap might get filled within the next few days if a minor pullback appears, and that will bring the SPY back to retest the 202.89 level. Whether it will retest the 202.89 level or not, the market breadth is signaling the inflection point near 207 could be tested with a possible near term target around the 208 level.
SPY:
The market continue to be biased to the upside while the internal showing improvement. Until the market breadth starts to deteriorate, one should avoid being caught in a short squeeze. Happy New Year!
